The Number of Self-engaged Employers Increases

Alicher AZANDAEV

The self-engaged employers are always among those who particularly suffered from socio economic crisis in Kazakhstan. In accordance with the general definition, the self-engaged employers are the persons engaged on own individual, partner or family business/enterprise; the persons who are working at their own expenses; the persons who are not employing the workers on a constant basis. So, the category of self-engaged employers turns out a very extensive. However, this category of employers have rather serious problems.

«Practically they are the persons who have been excluded from republican social system», this characteristic of the self-engaged employers is given by Mrs. Alma Nurguzhayeva, adviser for economic questions of "Union of the manufacturers and businessmen «Atameken». The representatives of the given category working in the sphere of commerce and services persistently ask the President and Prime-Minister to lower tax burden and payment for the rented trade areas, to help with the credits, to take out excessive administrative barriers, to found Ministry of Trade.

«The biggest category of the workers of small and medium business is in the sphere of trade and services in the markets», Mrs. Nurguzhayeva emphasizes. «They are poorly organized and informed, they are the most socially unprotected». Mrs. Zhibek Azhibayeva, chairman of Trade Union of the Enterprises for Trade and Services has noted that these people have to find means of subsistence themselves. Actually only the sphere of commerce incorporates all those employers who loose job. When the construction has stopped the workers were engaged in commerce; when the workers had been dismissed from the industrial enterprises, also, they were engaged in commerce and sphere of services.

As an illustration of Kazakhstan economic model having the system difficulties, the experts like to site as an example the road from Almaty (the biggest city of Republic) to Chinese border. The route looks like a «step». It means that on the ground the direction from China to megalopolis is lower, than the direction to China. It happened so due to fact that the super heavy «waggons» go to Kazakhstan filled up to overflowing, and return back to China empty.

For the last years something has been constructed in the Republic of Kazakhstan, namely 12 tube-casting plants, 12 armature (steel framework) plants, 1 brick plant ... However crisis in the market of the real estate effects on building industry, and in accordance of dominoes principle this effects on an industry of building materials. It is a difficult and sore subject, where should work the released employers. De facto, only the sphere of commerce and services could «absorb» all of them.

It is considered that Kazakhstan has an enormous industrial potential in the agrarian sphere. If to address to real agriculture, it is found that the majority of foodstuffs are imported to the Republic, except the grain and flour (meal). Even horse meat, the traditional cattle-breeding product, often is imported to local counters from Mexico. The meat gets in the country through the Russian territory. As the result of the long-term inflow of «stuff» dollars Kazakhstan could import any products, but its side effects impacted on local production in industrial branches. At present there are no former currency receipts as well as domestic manufacture can not be restored in short terms.

In connection with credit crisis many of self-engaged employers simultaneously have lost both business and the real estate, which was in a pledge at banks.
The majority of the self-engaged small traders are the women from the rural areas. They haven't any job in the countryside, but free-of-charge medical care and kindergartens are inaccessible for them in the city.

The self-engaged employers address to the officials and persistently ask them «to restrain their ardour of corruption actions».
Mr. Nursadyk Abishev, the president of Association of Markets, Enterprises of Commerce and Services has informed the general public that the anti-crisis government program developed for helping to small and medium business (it is financed by means of National Fund, the original reserve of state assets) doesn't help them in practice.

The program on re-financing and crediting of the subjects of small and medium business (SMB) was declared as a way to help them in the difficult period. However, the requirements to the borrowers are so high that the employers with the problem credits «drop out» from the program automatically. Therefore, the self-engaged employers ask the political leaders of the country «to lower the rates under the earlier received credits by the subjects of SMB or to give the businessmen credit vacation».

The self-engaged population (small business consisting of 3 workers) asks the Government to release from tax burden «with the exception of social and pension deductions, having put them on the registration account in tax bodies without prior arrangement».
It is necessary to return the customs duties on imported fruit and vegetable production which had been in force till January 1, 2009. These customs duties were at zero rate. The fruit and vegetables cultivated in Kazakhstan are not enough for the consumption in the Republic, but the increased duties influences on rise in prices for the products of the first necessity.

In 2005 the self-engaged employers made 32,9 % from a total number of the engaged population. They need the enough areas for the market trade. In Kazakhstan there are 117 sq. meters of the trade area for every 1000 persons. In Russia the similar parameter comes to 250 sq. meters, in Europe there are 400 sq. meters for every 1000 persons. The «long-term» credits are required for construction of the trade areas. The more the trade areas, the rent is cheaper.
It is necessary to have strategy and tactics of development of trade in the country. Absence of Ministry of Trade makes this practically impossible. «The trade doesn't develop in Kazakhstan», Mr. Abishev has declared. «The country needs the profile Ministry».

The local authorities are asked to lower the rate of costing the single coupons for trade (these taxes go to the local budgets). In 2008 Mr. Vladimir Shkolnik, the Minister of Industry and Trade has declared openly that all the markets of Almaty bring to urban treasury 1 billion tenge, as well as 24 billions tenge «accumulate» in various pockets. It means that even all the single coupons remove completely, the city will lose only 1 billion tenge, whereas financial load of self-engaged employers will become at once 25 billions tenge.

The information on what informal taxes have to have the dealers at crossing border and customs clearance has been shared by means of MASS-MEDIA. In addition after devaluation of tenge the product prices have grown practically for all (sanction to entrance, the quarantine service, transport inspection, sealing, services of «a pusher» and others), except for the customs control, where the rate has remained at 7 thousand tenge. As the result the informal taxes under the customs clearance and movement of a vehicle up to destination makes 399,5 thousand tenge in comparison with 328 thousand tenge before devaluation.
Mr. Nursadyk Abishev has explained the situation, «We were organized 10 years ago. We have been raising the problem during this period, but nobody doesn't want hear us».

The Government's last measures testify that the level of the problem in the country is realized.